BTP and BOT yields falling: up to where and until when?

Knowing how to manage one's own money on government bonds can actually help generate a real supplementary pension. But are these price levels to enter? The current prices are certainly not attractive. Courses still too high and consequently excessively tight returns to give buying advice. Even the yields of BOTs, although rising, remain negative.

Today's BOT auction

The result of today's BOT auction was in line with expectations: the yield rose to its highest level since last July.

But we are still talking about negative rates that are poorly advisable for a private saver. Indeed, the average weighted rate rose to -0.135% from -0.219% a month ago. In total, the 5.5 billion offered by the Treasury were entirely placed. On the other hand, with the ECB behind them, which repurchases them thanks to the new QE, the buying banks only act as intermediaries.

Speaking of BTP and BOT returns, the effectiveness of this mechanism for the recovery of the European economy, given the current results, remains to be verified. All the more so because by buying only government bonds, the banks remain apnea on the issue of corporate bonds issued years ago. Titles that have not even been listed for some time.

In essence, dozens of bonds that are unable to express a price for years and are listed, based on the mark to market principle, at the last known price, lie in the maze of funds, management and policies.

Certainly titles not to be purchased but which, even within the managed portfolios, are not immune from bringing future consequences.

As long as Lagarde does not extend the range of action of the ECB's QE including therein, on the FED and BOE model, also these assets, in fact toxic.

BTP purchasing areas: space and time

Taking the price of the BTP futures as a reference, the first purchase area is positioned at 135 where yields would remain limited.

More interesting, however, would be the landing towards the old 130-strong resistance that would now act as a strong support.

This is about space or prices.

At the level of time, according to current dynamics we talk at least a few months.

A credible target for producing good BTP purchases would be the end of winter or early spring.